Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
Apple’s official promo image for this year’s Worldwide Developer Conference, which the company will hold wholly online for the first time amid Covid-19 precautions. Photo: Handout

Apple to sell developers on building new apps amid pushback

  • Some of the group’s anger was sparked by Apple’s rejection last week of a popular email app
  • Hanging over the Worldwide Development Conference is an investigation by European regulators that could change the way Apple and developers make money from the App Store

Apple will walk into its annual development conference facing one of the biggest backlashes from its giant community of creators since its App Store started almost 12 years ago.

Third-party developers fuel a services business that generated more than US$46 billion for Apple in its last financial year, almost 18 per cent of the iPhone maker’s total revenue. Some of the group’s anger was sparked by the rejection last week of a popular email app, and comes as Apple needs to sell developers on building apps for the company’s latest platforms, including a wholesale shift of the underpinnings of the Mac.
Hanging over the Worldwide Development Conference, which begins on Monday, is the recent announcement by European regulators of an investigation that could fundamentally change the way Apple and developers make money from the App Store.

The past week started with the Cupertino, California-based company touting that the App Store generated US$519 billion in revenue for the global economy last year. It ended with the rejection of the Hey email app, in part, because the developer would not give Apple a cut of the subscription revenue.

The icon of Apple's App Store, centre, is seen on an iPhone. Photo: EPA

“We thought Apple realised that developers made the platform, but this incident has explicitly made clear that Apple sees developers as a source of revenue only,” said Aaron Vegh, a long-time software developer. “And that’s a difficult pill to swallow.” He said the action of the past week would be front of mind at the conference.

In a letter rejecting the latest software for the email app, Apple said the developer, Basecamp, had not created revenue for the App Store in eight years. “It reads as ‘you have no value to us unless you’re earning us tons of cash’,” Marc Edwards, an experienced App Store developer, wrote on Twitter. Apple generally requires developers to use its App Store payment service, which takes a cut of 15 per cent to 30 per cent of most app subscriptions and in-app purchases.

Other developers said that Apple’s slice of their revenue is the cost of doing business and they are happy to let the company handle app promotion and credit card processing. Some said the past week’s events wouldn’t affect their relationship.

“I’ve had Apple capriciously reject my apps for over a decade now,” said David Barnard, a developer advocate at RevenueCat. “At some point, you just come to accept the fact that Apple is a for-profit company doing everything they can to maximise shareholder value.”

Apple-supported study says App Store spurs US$519 billion in sales

In a statement, Apple said it “developed the App Store with two goals in mind: that it be a safe and trusted place for customers to discover and download apps, and a great business opportunity for entrepreneurs and developers. We’re deeply proud of the countless developers who’ve innovated and found success through our platform.” The company added that 84 per cent of apps are free and do not provide Apple a share of revenue.

Apple’s dealings with developers also are under scrutiny from US lawmakers. In an interview on Bloomberg Television on Friday, Representative David Cicilline, a Democrat from Rhode Island and chairman of the House Antitrust Subcommittee, called the App Store policies “highway robbery” and said the company demands a “ransom” from developers, referring to the 30 per cent revenue share.

Cicilline said the chief executives of the major technology companies including Apple would be asked to testify before Congress. So far, Apple has declined to make chief executive Tim Cook available.

Still, Apple needs the backing of the developer community for the changes expected to be unveiled at the conference.

At some point, you just come to accept the fact that Apple is a for-profit company doing everything they can to maximise shareholder value
David Barnard, a developer advocate at RevenueCat

The technology giant plans to announce a transition from Macs based on Intel Corp chips to computers running its own processors. The shift will force developers to update their apps to support the hardware, which could be a lengthy process. Apple also wants the latest iPhone, Apple Watch and iPad software features to excite developers into building fresh apps for the devices.

While the App Store generates revenue, its almost 2 million apps also give consumers reasons to buy Apple’s hardware, which still make the company the vast majority of its money.

Besides the major Mac chip transition, an update is expected to the macOS operating system that improves porting iOS updates to the computers. Last year, Apple started letting users move iPad apps to Macs, and earlier this year, let developers begin selling merged iPad and Mac apps while only charging consumers once.

Apple plans minor upgrades for the Apple TV set-top box software with a new version of the hardware in the works for as soon as later this year, while the Apple Watch is expected to get new faces, a mode for kids and, most notably, a new sleep tracking app. Bloomberg News reported in 2019 that Apple expected to add sleep tracking to the Apple Watch this year.


Apple’s App Store removes Hong Kong protest map app following China backlash

Apple’s App Store removes Hong Kong protest map app following China backlash

Apple also plans updates to the HomePod speaker, including adding the ability to use third-party music services such as those offered by Spotify Technologies. It is working on a new smaller HomePod for later this year.

For the iPhone and iPad, Apple is expected to announce several new features, including the ability for the iPhone to serve as a car key, a new feature that works like Google Translate, upgraded tools for the developers to build augmented reality apps and updates to the Podcast service. Apple has also weighed opening up iOS further to third-party apps, letting users change their default mail app and web browser.

Apple iOS 14: what to expect from the next big iPhone upgrade

Perhaps most important to iPhone and iPad users who quickly upgraded to iOS 13 last year, Apple has revamped its software testing process with plans to improve software quality and reduce bugs.

The software updates will set the stage for a range of new hardware devices also launching this year, including a new Apple Watch, four redesigned iPhones, the new HomePod and Apple TV box, as well as updates to the iMac and MacBook Pro. The company also plans its first pair of over-ear headphones as well as an accessory for finding physical objects, which will integrate with the new software.

For Apple engineers, putting together this coming week’s conference has been a challenge. Covid-19 related precautions have made the event Apple’s first to be held wholly online and most engineers developed their products and planned the gathering from their homes.